The heterogeneous cyclicality of income and wages among the distribution in the UK

Publication type

Journal Article

Published in

B.E. Journal of Economic Analysis & Policy

Authors

María Cervini-Plá, Antonia López-Villavicencio and José I. Silva

Publication date

Summary

We investigate the cyclicality of real hourly wages and income using individual data for the UK over the 1991–2013 period. By paying special attention to the heterogeneity among different earnings and income groups, we document that individuals at the top of the distribution are more cyclical than lower ones. We also show that real wages and income are roughly acyclical for low-wage and low-income workers. In particular, we present evidence that the adjustment for low-paid workers takes place through transitions to and from unemployment.

Volume

18

DOI

https://doi.org/10.1515/bejeap-2017-0181

ISSN

16

Subjects

Economics, Income Dynamics and Wages And Earnings

Notes

Not held in Hilary Doughty Research Library - bibliographic reference only